CGMA COMPETENCY FRAMEWORK the CGMA COMPETENCY FRAMEWORK IS COMPRISED of FOUR KNOWLEDGE AREAS Technical Skills, Business Skills, People Skills and Leadership Skills
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CGMA COMPETENCY FRAMEWORK THE CGMA COMPETENCY FRAMEWORK IS COMPRISED OF FOUR KNOWLEDGE AREAS Technical Skills, Business Skills, People Skills and Leadership Skills. These knowledge areas are underpinned by ethics, integrity and professionalism. This downloadable document is the complete version of the CGMA Competency Framework. Apply accounting In the context and finance of the business skills And lead within the organisation CGMA COMPETENCY FRAMEWORK — PROFICIENCY LEVELS FOUNDATIONAL: This requires a basic understanding of the business structures, operations and financial performance, and includes responsibility for implementing and achieving results through own actions rather than through others. INTERMEDIATE: This requires a moderate understanding of overall business operations and measurements, including responsibility for monitoring the implementation of strategy. This has limited or informal responsibility for colleagues and/or needs to consider broader approaches or consequences. ADVANCED: This requires strong understanding of the organisation’s environment, current strategic position and direction with strong analytical skills and the ability to advise on strategic options for the business. This includes formal responsibility for colleagues and their actions; and that their decisions have a wider impact. EXPERT: This requires expert knowledge to develop strategic vision and provide unique insight to the overall direction and success of the organisation. This has formal responsibility for business areas and his/her actions and decisions have a high-level strategic impact. TECHNICAL SKILLS TECHNICAL SKILLS 2 BUSINESS SKILLS BUSINESS SKILLS 34 PEOPLE SKILLS LEADERSHIP SKILLS PEOPLE SKILLS 42 ETHICS, INTEGRITY AND PROFESSIONALISM LEADERSHIP SKILLS 48 CGMA COMPETENCY FRAMEWORK 1 CGMA COMPETENCY FRAMEWORK TECHNICAL SKILLS TECHNICAL SKILLS FOUNDATIONAL: This requires a basic understanding of the business structures, operations and financial performance, and includes responsibility for implementing and achieving results through own actions rather than through others. INTERMEDIATE: This requires a moderate understanding of overall business operations and measurements, including responsibility for monitoring the implementation of strategy. This has limited or informal responsibility for colleagues and/or needs to consider broader approaches or consequences. ADVANCED: This requires strong understanding of the organisation’s environment, current strategic position and direction with strong analytical skills and the ability to advise on strategic options for the business. This includes formal responsibility for colleagues and their actions; and that their decisions have a wider impact. EXPERT: This requires expert knowledge to develop strategic vision and provide unique insight to the overall direction and success of the organisation. This has formal responsibility for business areas and his/her actions and decisions have a high-level strategic impact. FINANCIAL ACCOUNTING AND REPORTING 4 TECHNICAL SKILLS COST ACCOUNTING AND MANAGEMENT 7 BUSINESS SKILLS BUSINESS PLANNING 9 PEOPLE SKILLS MANAGEMENT REPORTING AND ANALYSIS 11 CORPORATE FINANCE AND TREASURY MANAGEMENT 16 LEADERSHIP SKILLS RISK MANAGEMENT AND INTERNAL CONTROL 21 ACCOUNTING INFORMATION SYSTEMS 26 ETHICS, INTEGRITY AND PROFESSIONALISM TAX STRATEGY, PLANNING AND COMPLIANCE 29 CGMA COMPETENCY FRAMEWORK TECHNICAL SKILLS 3 FINANCIAL ACCOUNTING AND REPORTING PROFESSIONAL ACCOUNTING STANDARDS This ensures that the organisation conducts operations and fulfils its statutory and regulatory obligations according to professional accounting standards (domestic and/or international as applicable per business model). FOUNDATIONALDEFINITION INTERMEDIATEDEFINITION DEFINITIONADVANCED DEFINITIONEXPERT • Demonstrate awareness and • Review the accuracy and • Demonstrate advanced level • Oversee accounting standards knowledge of the professional legitimacy of recorded financial understanding of accounting selected and implemented by the accounting standards transactions and related reports standards organisation • Apply those principles to • Assist in developing and • Develop, manage and execute • Identify potential issues associated accurately record financial implementing new accounting plans for implementation of new or with proposed accounting and transactions and maintain and reporting pronouncements updated accounting and reporting reporting rules appropriate supporting and determine the resulting impact pronouncements documentation • Recommend appropriate • Identify potential issues associated accounting and reporting with unusual or complex treatment for certain transactions transactions, review and approve the appropriate treatment TECHNICAL SKILLS FINANCIAL ACCOUNTING AND REPORTING 4 FINANCIAL ACCOUNTING AND REPORTING TRANSACTIONAL ACCOUNTING AND CLOSING PROCESSES This is the process of recording, adjusting and reconciling financial transactions and events according to professional accounting standards. FOUNDATIONALDEFINITION INTERMEDIATEDEFINITION DEFINITIONADVANCED DEFINITIONEXPERT • Perform all activities within the • Oversee the receivables process; • Resolve exceptional situations in • Design receivables and payables receivables process; calculate identify ways to mitigate debt the receivables process, calculate processes and relevant strategies non-complex provisions using related risks; calculate the impact complex provisions; advise on according to best practices appropriate methods; identify risks of debtors on financial ratios; debtor risk mitigation methods • Produce guidelines and policy for of bad debts calculate non-routine provisions • Manage centralised, complex accounting operations; formulate • Perform all activities within the • Oversee the payables process; accounts payable processes; risk mitigation strategies for bad payables process calculate the impact of creditors on advise on implications of debts financial ratios creditor profile on the business • Perform month end close activities • Provide advice on process performance as well as alternative and provide accurate and timely • Oversee all month-end close improvement, governance and processes related to payables financial submissions processes and activities exceptional situations • Simplify, improve and harmonise • Reconcile sub-ledgers to general • Reconcile complex accounts • Strategically lead implementation existing and complex processes ledger and perform other related involving inconsistent data from of the design and function of the and systems for account account reconciliations; evaluate non-integrated systems organisation’s chart of accounts reconciliations and month-end accounts for legitimacy and according to best practice • Define new general ledger closing balance substantiation accounts and ensure proper • Design processes and relevant • Define and design effective charts • Understand the different maintenance of the organisation’s strategies according to best of accounts components and chart of accounts practice and produce corporate interdependencies of the • Ensure effective accounting guidelines on provisions organisation’s chart of accounts processes and implement changes consistent with best practices TECHNICAL SKILLS FINANCIAL ACCOUNTING AND REPORTING 5 FINANCIAL ACCOUNTING AND REPORTING FINANCIAL REPORTING AND COMPLIANCE This is the process of creating internal and external financial reports for both individual entities or groups using appropriate accounting and/or regulatory requirements. FOUNDATIONALDEFINITION INTERMEDIATEDEFINITION DEFINITIONADVANCED DEFINITIONEXPERT • Understand and describe the main • Prepare financial statements and • Ensure integrity, accuracy • Advise on the ethical selection and elements of financial statements reports and ensure accuracy, and completeness of financial adaption of relevant accounting and reports completeness, and compliance statements; discuss the need policies and estimates with reporting requirements for and nature of appropriate • Understand general compliance • Ensure full organisational disclosures requirements and provide accurate • Identify potential compliance compliance and timely financial submissions issues and recommend solutions to • Implement efficient process upper management; ensure timely changes consistent with best completion of financial reporting practices; create a corporate requirements culture of compliance and shared accountability TECHNICAL SKILLS FINANCIAL ACCOUNTING AND REPORTING 6 COST ACCOUNTING AND MANAGEMENT COST ACCOUNTING This is the process of recording costs with associated drivers in the production, analysis and use of information for decision-making in the organisation. FOUNDATIONALDEFINITION INTERMEDIATEDEFINITION DEFINITIONADVANCED DEFINITIONEXPERT • Understand and apply basic • Break down key business • Implement and apply advanced • Advise on the role of sustainability concepts of cost accounting to processes, allocate costs and costing techniques and discern and environmental cost accounting support entities’ operational and income on an agreed standardised whether costing techniques and its contribution to improved financial requirements basis and identify performance used by the organisation are environmental, social and financial issues appropriate business performance • Demonstrate knowledge to effectively identify and update • Apply various costing methods • Advise on role and classification • Approve offering on new products product costs as necessary such as standard, marginal and of